The Place of Science in Modern Civilisation, and Other EssaysVeblen, Thorstein
Philosophy
The Place of Science in Modern Civilisation, and Other Essays
Veblen, Thorstein
Economics; Science
As has been suggested in an earlier paragraph, it is characteristic of
hedonistic economics that the large and central element in its
theoretical structure is the doctrine of distribution. Consumption being
taken for granted as a quantitive matter simply,--essentially a matter
of an insatiable appetite,--economics becomes a theory of acquisition;
production is, theoretically, a process of acquisition, and distribution
a process of distributive acquisition. The theory of production is drawn
in terms of the gains to be acquired by production; and under
competitive conditions this means necessarily the acquisition of a
distributive share of what is available. The rest of what the facts of
productive industry include, as, _e.g._, the facts of workmanship or the
" state of the industrial arts," gets but a scant and perfunctory
attention. Those matters are not of the theoretical essence of the
scheme. Mr. Clark's general theory of production does not differ
substantially from that commonly professed by the marginal-utility
school. It is a theory of competitive acquisition. An inquiry into the
principles of his doctrine, therefore, as they appear, _e.g._, in the
early chapters of the _Essentials_, is, in effect, an inquiry into the
competence of the main theorems of modern hedonistic economics.
"All men seek to get as much net service from material wealth as they
can." "Some of the benefit received is neutralised by the sacrifice
incurred; but there is a net surplus of gains not thus canceled by
sacrifices, and the generic motive which may properly be called
economic is the desire to make this surplus large."[35] It is of the
essence of the scheme that the acquisitive activities of mankind afford
a net balance of pleasure. It is out of this net balance, presumably,
that "the consumer's surpluses" arise, or it is in this that they merge.
This optimistic conviction is a matter of presumption, of course; but it
is universally held to be true by hedonistic economists, particularly by
those who cultivate the doctrines of marginal utility. It is not
questioned and not proven. It seems to be a surviving remnant of the
eighteenth-century faith in a benevolent Order of Nature; that is to
say, it is a rationalistic metaphysical postulate. It may be true or
not, as matter of fact; but it is a postulate of the school, and its
optimistic bias runs like a red thread through all the web of argument
that envelops the "normal" competitive system. A surplus of gain is
normal to the theoretical scheme.
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